February 2006
Brand Strategy's Trends and News for February
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At first, we are planning to produce the newsletter on a monthly basis – in between issues of the magazine. Our aim is to highlight trends, news and comment in the world of branding and marketing; report on events that we may have attended in the month;please let us know what you think – and what you would like to see us covering. Email ruth.mortimer@centaur.co.uk
For this month:
Ruth Mortimer, editor (ruth.mortimer@centaur.co.uk) recommends...
BOYCOTTS AND RELIGION
Boycotts seem to be hitting the headlines this month. European brands are finding their sales plummeting in the Middle East after the publication and republication of cartoons featuring Mohammed. One company, Arla Foods, reports that it is losing up to $1m a day as a result:
More...Are brands combating this by using religion as a marketing tool? Can you do this without offending other subsections of society? See the article in our February issue (BS subscribers only):
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AMERICAN EXPANSION
European supermarket Tesco has announced that it is moving into the US market, spending £250m and expecting to break even in two years. But will the plucky outsider manage to break into the notoriously tricky American market or will it suffer the same fate as Sainsbury’s with its Shaw’s acquisition?
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CHINA AND INDIA
Does your company bracket China and India in the same box? The two markets have very different profiles: India has 1.5 wage earners per household but 2.6 dependents per wage earner. China has 2.1 wage earners in each household and only 0.7 dependents for each.
Marcel Fenez from PricewaterhouseCoopers, based in Hong Kong, has compared the two regions in an enlightening report:
For more, visit:
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Morag Cuddeford Jones, contributing editor, (morag.cuddeford@centaur.co.uk) recommends...
CHINA, INDIA AND JAPAN
Marian Saltzman, EVP of strategic content at ad agency JWT has been examining the impact of what she calls ‘Chindia’ – the emerging markets of China and India – for the World Economic Forum in Davos, Switzerland. In March’s Brand Strategy magazine she’ll be discussing opportunities for Western and ‘chindianese’ brands alike. Here is an example of her findings on Asian potential:
“CHINA, INDIA, AND JAPAN—THE “POWER TRIANGLE”: The three economies in the power triangle offer one another complementary strengths—for example, China in manufacturing, India in services, and Japan in finance and innovation. Thus, the balance of power may revolve less around geopolitical rivalry and economic competition, and more around mutual benefit.”
See next month’s Brand Strategy for more. Meanwhile, visit the World Economic Forum homepage: Http://www.weforum.org
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EXPLOITING THE TREND
Starbucks announced its 2005 annual results on 8 February 2006 in Seattle but its mind was far away across the Pacific ocean. Its Chinese operation has seen almost 35% growth over the last year with an increase in its stores from 152 to 209. In its earnings release the company stated: “Expansion within China continues to present the greatest growth opportunity in the Country’s international footprint”.
Christine Day, the company’s Asia Pacific president, outlined Starbucks’ target demographic:
-- Young and affluent; 41 percent of Chinese are aged 19 to 25
-- Status conscious
-- Students who see Starbucks as a great place for study groups or to read quietly
-- Multi-national executives and their families who see Starbucks as a home away from home and a place to meet new friends
-- Returnees who have been educated overseas
-- Xiaozi, or young capitalists, who enjoy high disposable incomes
Starbucks main website:
More...Starbucks China website:
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Claudine Baker, feature writer, (claudine.baker@centaur.co.uk) recommends...
EMAIL MARKETING
Is email marketing a valuable marketing method or just rubbish clogging up your inbox?
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YOUTH MARKETING
Worried that you aren’t reaching the next generation of consumers? Check out BrandWeek’s report on Marketing to Kids:
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SEARCH MARKETING
Many brands know the importance of search marketing, but are you doing it properly? Find out here:
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Also from Brand Strategy magazine this month...
Rich Ross, president of the Disney Channel Worldwide, predicts the future of television technology and branding for the next generation:
More...Nikesh Arora, European VP of Google, talks of the weight of expectations in creating a global online brand:
More...Exclusive research on sonic branding:
More...Get the full Sonicbrand Top 50 best sonic brands here:
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